Dr. Lal PathLabs (LALPATHLAB) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 11.3% year-over-year to INR 670 crore, with profit after tax up 24.3%, driven by higher sample volumes, network expansion, and favorable test mix.

• Sample volumes increased 10.7% to 23.4 million, and patient volumes rose 5.3% to 7.6 million year-over-year.

• SwasthFit program contributed 27% of revenue, up from 25% last year, and grew 20–22% year-over-year.

• Expansion continued with 18 new labs added in FY25 and ongoing focus on tier 2/3/4 cities, especially in West and South India.

• Investments in digital transformation, high-complexity testing, and operational efficiency, including 58 new tests and enhanced genomics and allergy diagnostics.

Financial highlights

• Q1 FY26 consolidated revenue: INR 6,698 million (INR 670 crore), up from INR 6,019 million (INR 602 crore) in Q1 FY25, an 11.3% increase.

• EBITDA rose 13.1% to INR 192 crore, with margin at 28.7%.

• Profit after tax up 24.3% to INR 134 crore, net margin at 20%.

• EPS for Q1 FY26 at INR 15.9, up from 12.8 year-over-year.

• Other income rose to INR 28 crore from INR 21 crore year-over-year.

Outlook and guidance

• Revenue growth guidance maintained at 11–12% for FY26.

• EBITDA margin for the full year expected to be slightly better than initial projections, with Q1 margin (28.7%) not indicative of the full year due to planned H2 investments.

• Continued focus on digital transformation, operational excellence, and expansion in core and emerging markets.

• Integration of Suburban Diagnostics expected to further boost West India performance.